The market would be very interesting on the opening session on Monday.

Everyone expects the bears to control the market after BJP conceded defeat in Bihar. Second quarter results are also out, FED would raise the interest rate in December. All negatives would be factored in the market now. Shortly we will know the levels of the market owing to these negatives.

Last week two major pharmaceutical companies lost heavily.

Sun pharmaceutical

Dr. Reddy Lab

Sun Pharmaceutical Industries lost 9.6% after its US subsidiary Taro Pharmaceutical Industries posted weak Q2 September 2015 earnings. Sun is very close to its support level and any weakness below Rs 800 would take it down further to lower levels. Sun is trading near the 52 week low which means that it is near the danger level.

Dr Reddy's Laboratories slumped 14.99% after the company inofmred the bourses that it received a warning letter by USFDA relating to the company's API manufacturing facilities at Srikakulam in Andhra Pradesh and Miryalaguda in Telangana, as well as oncology formulation manufacturing facility at Duvvada in Visakhapatnam, Andhra Pradesh. Incidentally, Dr. Reddy has closed below 200 DMA with higher volume. It was the highest volume in the last 1 year.

In the past 2 years the pharmaceutical stocks went up sharply but currently these stocks may not offer values. The risk reward ratio is not favourable on many of the pharmaceutical stocks. On 12th of November CPI and IIP will be announced which could also dictate the trend of the market in the near term. Stock markets would remain open only for a one-hour trading session on Wednesday evening on Muharat trading. Market will remain closed on Wednesday and Thursday for Diwali Balipratipada.

One of the interesting stocks in our watch list, TVS motors has remained near the 52 week high with higher volume. On 2nd of November the company informed that the sales growth in October 2015 for the company is 14%. Technically the stock is in the hands of Bulls. Once it closes above the resistance level of Rs 292.50 we can expect it to surpass the 52 week high of Rs 320!